TGI Fridays Files for Chapter 11 Bankruptcy Amid Financial Struggles

The restaurant chain faces nearly $50 million in unused gift cards as it seeks to restructure and maintain operations.

TGI Fridays has filed for Chapter 11 bankruptcy protection, citing COVID-19 impacts and a flawed capital structure as major challenges.
The company is grappling with $49.7 million in outstanding gift cards, creating concerns about its ability to reimburse franchisees if cardholders rush to redeem them.
Despite the bankruptcy filing, TGI Fridays plans to keep its 39 company-owned U.S. locations open and continue honoring gift cards.
The chain has closed over 50 locations this year and is exploring strategic alternatives to ensure its long-term viability.
TGI Fridays joins several other restaurant chains, including Red Lobster and Buca di Beppo, that have filed for bankruptcy amid shifting consumer preferences and economic pressures.